Federal Act
on Debt Enforcement and Bankruptcy
(DEBA)¹

¹ At the debt­or’s re­quest, the com­pos­i­tion court may sus­pend the real­isa­tion of mort­gaged prop­erty in set­tle­ment of a claim that arose be­fore the com­pos­i­tion pro­ceed­ings were ini­ti­ated for a max­im­um of one year after con­firm­a­tion of the com­pos­i­tion agree­ment, provided that no more than one year's in­terest on the mort­gaged debt is out­stand­ing. However, the debt­or must cred­ibly demon­strate that he needs the prop­erty to op­er­ate his busi­ness and that real­isa­tion of the mort­gaged prop­erty would jeop­ard­ise his eco­nom­ic ex­ist­ence.

² The af­fected mort­gagees must be giv­en the op­por­tun­ity to sub­mit a writ­ten re­sponse be­fore the hear­ing on the con­firm­a­tion of the com­pos­i­tion agree­ment (Art. 304); they must be summoned in per­son to the cred­it­ors’ meet­ing (Art. 302) and to the hear­ing be­fore the com­pos­i­tion court.

³ The sus­pen­sion of the real­isa­tion pro­ceed­ings lapses by op­er­a­tion of law if the debt­or vol­un­tar­ily ali­en­ates the mort­gaged prop­erty, if he be­comes bank­rupt or if he dies.

⁴ The com­pos­i­tion court shall re­voke the sus­pen­sion of the real­isa­tion pro­ceed­ings at the re­quest of an af­fected cred­it­or and after hear­ing the debt­or if the cred­it­or can cred­ibly demon­strate that:

1.

the debt­or has ob­tained the sus­pen­sion by provid­ing false in­form­a­tion to the com­pos­i­tion court; or

2.

the debt­or has ac­quired new as­sets or in­come from which he can pay the debt for which he is sub­ject to debt en­force­ment without jeop­ard­ising his eco­nom­ic ex­ist­ence; or

3.

the eco­nom­ic ex­ist­ence of the debt­or is no longer jeop­ard­ised by the real­isa­tion of the mort­gaged prop­erty.